A Medicare Supplement is an insurance plan sold by a private insurance company to cover some of the gaps in Medicare coverage. They are frequently referred to as “Medigap Plans.” If you have a Supplement policy, Medicare will first pay its share of your medical expenses. Then your policy will step in and pay its share. Depending on the Medicare Supplement policy you have, the amount the Plan pays can vary. As a rule of thumb, the more the plan covers, the higher the monthly premiums. With premiums going up across the country, many people are looking for an affordable alternative to a Plan with all the bells and whistles. Despite the monthly premiums, these plans remain popular because you are not limited to using a network provider. If you are traveling when you need medical care you can see any physician that accepts Medicare, anywhere in the United States.
Standardized Medicare Supplements
Every Medicare Supplement Plan must follow the guidelines created by the Centers for Medicare and Medicaid Services (CMS). Each standardized Plan is identified by a letter and must provide the same basic benefits regardless of the insurance company that sells the Plan and where the plan is purchased. Cost is usually the only difference between Medicare Supplement policies with the same letter sold by different insurance companies. Some Medicare Supplements may offer coverage not covered by Medicare, such as coverage while traveling outside the United States.
There are a few plans available that help keep the monthly premium down while providing coverage and flexibility of provider and delivery of service.
Plan F and Plan G both have a High Deductible version available in select markets. If one of these is offered in your state, the savings on monthly premiums can more than offset the out-of-pocket costs that may be incurred. With either of these options you must pay for Medicare-covered costs (coinsurance, co-payments, and deductibles) up to the deductible amount of $2,800 in 2024 before your policy pays anything. For Plan G-HD the Part B Deductible of $240 in 2024 is counted toward the $2,800. For Plan F-HD the Part B Deductible is already covered while the $2,800 deductible amount remains the same.
Plan N is the newest plan, and the monthly premiums are lower than for Plan F or Plan G. Plan N is like Plan G in that there is no coverage for the Part B deductible. It differs from Plan G in that it does not cover the Part B excess charges and there are deductibles for office visits and emergency room visits that are not covered.
The Bottom Line:
- Plan F is the most comprehensive Medicare Supplement plan available. However, it is not available to people who became eligible for Medicare on or after January 1, 2020.
- Plan F-HD covers 100% of Medicare Part A and Medicare Part B costs after the deductible of $2,800 is met.
- Plan G provides the most coverage except for the Part B deductible ($240 in 2024).
- Plan G-HD covers 100% of Medicare Part A and Medicare Part B costs after the deductible of $2,800 is met (the Part B deductible of $240 is included in the $2,800).
- Plan N covers Part B charges after the $240 deductible is met, but not Part B excess charges. There may be charges up to $25 for office visits and $50 for emergency room visits (waived if admitted to the hospital).